Vice President JD Vance announced on Wednesday that the Trump administration would "temporarily halt" over $200 million in Medicare funds for Minnesota in an effort to address fraud in the state.
It’s a great idea, but the problem is people file their federal taxes as individuals and pay the IRS directly, so how are the blue states supposed to withhold the money?
The federal government will hold the taxpayer responsible for not paying their federal taxes. The employers withholding federal taxes from paychecks and not forwarding that on to the IRS would be committing a federal crime, but the IRS would still demand their tax payment from each taxpayer, just like how it happens if the employer didn’t withhold enough–the taxpayer has to send in a check.
That’s just how the system and law works. Federal law supersedes State law. You pay federal taxes to the federal government under federal tax laws, and the State has no power to say you don’t owe them.
It’s a great idea, but the problem is people file their federal taxes as individuals and pay the IRS directly, so how are the blue states supposed to withhold the money?
Wouldn’t be all of it but the state could instruct any businesses in the state to not submit any federal tax it collects
The federal government will hold the taxpayer responsible for not paying their federal taxes. The employers withholding federal taxes from paychecks and not forwarding that on to the IRS would be committing a federal crime, but the IRS would still demand their tax payment from each taxpayer, just like how it happens if the employer didn’t withhold enough–the taxpayer has to send in a check.
That’s just how the system and law works. Federal law supersedes State law. You pay federal taxes to the federal government under federal tax laws, and the State has no power to say you don’t owe them.